Egypt's IT market bounced back from a slowdown at the height of political crisis in 2014 and2015, and we expect strong growth to occur over the medium term. However, the growth is expected to beslightly slower than it was immediately after the crisis when pent-up demand pushed growth even higher. Acombination of population and income growth are positives for the retail market where there is still scopefor vendors to target increasing PC penetration. In the software and services segment growth potential iseven faster as the public and private sector modernises. However, there is a downside, primarily frompolitical and security risks that could potentially undermine the economic growth trajectory.
Latest Updates & Industry Developments
- Computer hardware sales are predicted to increase from EGP8.9bn in 2016 to EGP12.3bn in 2020, acompound annual growth rate (CAGR) of 8.4%. There will be a small downgrade to reflect the greaterthreat of smartphone cannibalisation, but population and income growth, and educational procurementwill support the segment and maintain growth.
- Software sales are forecast to increase from EGP3.3bn in 2016 to EGP5.5bn in 2020, a CAGR of 13.3%.Piracy is still holding back software sales and overall the software market in Egypt is of a low value, butSoftware as a Service (SaaS) provision is expected to help counter piracy and deepen the market toaccelerate spending growth.
- IT services sales are predicted to increase from EGP4.9bn in 2016 to EGP8.2bn in 2020, a CAGR of14.1%. Cloud services will be an area of outperformance as vendors target opportunities presented by thelow on-premises penetration of legacy solutions.
Table Of Contents
Egypt Information Technology Report Q4 2016 BMI Industry View 7 SWOT 9 Industry Forecast 11 Latest Updates 11 Structural Trends 11 Table: Enterprise Trends - GVA By Vertical (Egypt 2015-2020) 15 Table: IT Industry - Historical Data And Forecasts (Egypt 2013-2020) 16 Industry Risk Reward Index 17 Table: Middle East And Africa IT Risk/Reward Index, Q4 2016 20 Market Overview 21 Recent Developments 21 Hardware 21 Software 26 Cloud Computing 30 IT Services 34 Industry Trends And Developments 39 IT Hardware Trade 39 Table: Africa IT Hardware Trade 39 Table: Egypt IT Hardware Trade, 2010-2015 40 IT Industry Analysis 41 Regulatory Development 44 Table: Government Authorities 44 Competitive Landscape 49 Egypt IT Companies 49 IT Vendors - EMEA, 2015 54 Table: Computer Hardware 54 Table: Software 54 Table: Cloud 55 Table: IT Services 56 Retailers 57 Table: Selected Electronics Retailers 57 Table: Selected Online Retailers 58 Regional Overview 59 Demographic Forecast 62 Demographic Outlook 62 Table: Population Headline Indicators (Egypt 1990-2025) 63 Table: Key Population Ratios (Egypt 1990-2025) 63 Table: Urban/Rural Population and Life Expectancy (Egypt 1990-2025) 64 Table: Population By Age Group (Egypt 1990-2025) 64 Table: Population By Age Group % (Egypt 1990-2025) 65 Methodology 67 Industry Forecast Methodology 67 Sources 69 Risk/Reward Index Methodology 69 Table: IT Risk/Reward Index Indicators 70 Table: Weighting Of Components 71